Report: Csányi planned to buy Tesco, Orbán stopped him

History

Hungarian OTP Bank group owner Sándor Csányi was planning to purchase the European portfolio of Tesco, but Hungary’s Prime Minister Viktor Orbán dissuaded him in order to maintain a good relationship with his political ally in Poland, Jaroslaw Kaczynski, according to a report published by Hungarian weekly Figyelő today.

Citing unnamed sources, the paper reported that the Hungarian government initially welcomed the idea of Csányi investing in Tesco, however, after the Polish elections put the Law and Justice PiS party in power, Orbán recommended the businessman not bid for the company, as he did not want relations to deteriorate with Kaczynski, the former PM of Poland and current chairman of PiS, who is siding with Orbán on the migration issue.

In its article, Figyelő implied that business people in Poland would be interested in buying Tesco and that Orbán did not want to interfere with this process. 

According to the paper, Csányi had even set up a team to work on the acquisition of Tesco Europe, which operates the chain’s stores in the area of the V4 countries, for approximately HUF 1 trillion. 

The paper says that if OTP bought Tesco Europe, approximately 8-10 million new card owners and residential clients could be added to the bank’s portfolio, thanks to the banking and commercial synergies generated by the acquisition.

The weekly said that the Hungarian government has not yet responded to its queries about the proposed bid or Orbánʼs alleged involvement.

During his weekly press conference a week ago, Hungaryʼs Cabinet Chief János Lázár called it a “serious problem” that there is no majority Hungarian player in the domestic retail sector.

ADVERTISEMENT

Business confidence falls slightly in June Analysis

Business confidence falls slightly in June

Lawmakers approve 2022 budget Parliament

Lawmakers approve 2022 budget

Duncan Graham reelected as BCCH president Appointments

Duncan Graham reelected as BCCH president

Budapest launches revamped coupon card for visitors City

Budapest launches revamped coupon card for visitors

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.